E8 3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight Line Depreciation) LO8 2, 8 3 Skip to question The following information applies to the questions displayed below Shahia Company bought a building for $71,000 cash and the land on which it was located for $111,000 cash The company paid transfer costs of $14,000 ($4,000 for the building and $10,000 for the land) Renovation costs on the building before it could be used were $25,000 E8 3 Part 1 Required 1 Prepare the journal entry to record the purchase of the property, including all relevant expenditures Assume that all transactions were for cash and that all purchases occurred at the start of the year Note If no entry is required for a transaction event, select No journal entry required in the first account field Required information Journal entry worksheet Record the purchase of property, including all expenditures, paid with cash Note Enter debits before credits E8 3 (Algo) Computing and Recording Cost and Depreciat Depreciation) LO8 2, 8 3 The following information applies to the questions displayed below Shahia Company bought a building for $71,000 cash and the land on cash The company paid transfer costs of $14,000($4,000 for the bu Renovation costs on the building before it could be used were $25,0 E8 3 Part 2 2 Compute straight line depreciation at the end of one year, assuming an es estimated residual value 3 Determine the net book value of the property (land and building) at the end of year 2 Note Amounts to be deducted should be indicated by a minus sign

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E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LO8-2, 8-3 Skip to question [The following information applies to the questions displayed

E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LO8-2, 8-3

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[The following information applies to the questions displayed below.]

Shahia Company bought a building for $71,000 cash and the land on which it was located for $111,000 cash. The company paid transfer costs of $14,000 ($4,000 for the building and $10,000 for the land). Renovation costs on the building before it could be used were $25,000.

E8-3 Part 1

Required:

1. Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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Required information Journal entry worksheet Record the purchase of property, including all expenditures, paid with cash. Note: Enter debits before credits. E8-3 (Algo) Computing and Recording Cost and Depreciat Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below. Shahia Company bought a building for $71,000 cash and the land on cash. The company paid transfer costs of $14,000($4,000 for the bu Renovation costs on the building before it could be used were $25,0 E8-3 Part 2 2. Compute straight-line depreciation at the end of one year, assuming an es estimated residual value. 3. Determine the net book value of the property (land and building) at the end of year 2 . Note: Amounts to be deducted should be indicated by a minus sign